USPS loses appeal in Netflix/Gamefly case

The U.S. Postal Service cannot remove the cap and hike prices on the mailers that Netflix and GameFly use to ship their rentals to customers, the U.S. Court of Appeals for the D.C. Circuit ruled Tuesday.

A three-judge panel ruled that the post office dominates the market in the round-trip mailers used by Netflix and others because companies like Fed Ex and UPS do not offer similar services. Because of that, the Postal Service cannot remove the “statutory price ceiling” on those shipments.